Malaysia's Ministry of Finance says the national carbon tax policy is in its final phase, with initial implementation targeting the iron, steel, and energy sectors. Deputy Finance Minister Liew Chin Tong stated the policy aims to put a price on carbon emissions rather than generate revenue, aligning with the country's 2050 net-zero target. The announcement came during a parliamentary session discussing the timeline for Budget 2026. This move signals a concrete step in Malaysia's climate policy, moving from planning to execution. By focusing on heavy-emitting industries first, the government is establishing a carbon pricing mechanism that could influence investment decisions and operational costs in those sectors. The policy's design and implementation details will be critical for its effectiveness in reducing emissions.
